Online used car trading platform, Carsome has entered into a partnership with CIMB Bank Berhad (CIMB) to provide a co-developed inventory financing solution to used car dealers
The partnership aims to directly reduce processing time and minimise physical documentation via Carsome’s online platform in Malaysia.
The collaboration, a first-in-market between a bank and an online used car trading platform, is expected to drive inventory volume for dealers, subsequently increasing market demand within the used car industry.
Carsome co-founder and group chief executive officer, Eric Cheng said the company is excited to work with CIMB in providing seamless financing solutions for its dealers. “Our partnership with CIMB will enable a more efficient financing option for car dealers who acquire inventory on Carsome’s platform, which in turn helps them grow their businesses,” said Cheng.
Chief executive officer of Group Ventures & Partnerships at CIMB Group, Effendy Shahul Hamid said, “CIMB is pleased to partner Carsome to integrate a lending solution within its digital ecosystem. We hope this partnership will provide more accessible and straight-through financing facilities that deliver better turnaround and enablement for dealers. Businesses today not only expect financial services to be available digitally, but also embedded within the platforms they transact with. This is precisely where CIMB intends to create value for Carsome and its users.”
The collaboration with CIMB underlines Carsome’s rapid growth since its inception in 2015. The company recently reported a V-shaped recovery since resuming business after the Movement Control Order (MCO) period.
In May 2020, Carsome launched its RM55.5 million Dealer Alliance Support Program, an initiative that provides short-term boosts in the forms of bonus rewards and credit lines to help used car dealers rebuild their businesses and finances after MCO.